As technology advances, so does the scammer’s knowledge and power. Where there is room to succeed, there will always be those who try to cut corners and steal from the source instead of doing the necessary research and hard work. While you might wonder who would do such a thing, unfortunately, it’s quite common—especially in the rapidly growing world of business & crypto. This means you need to be particularly cautious when using technology for investments like cryptocurrency, ensuring you protect your assets from fraud and scams.
If you want to earn a few extra pennies on the side or even turn it into a full-time career, it’s in your best interest to be fully aware of all the potential risks involved. Although most crypto trading apps now require you to take a quiz to understand these risks, they often don’t provide a complete rundown of common pitfalls to watch out for or strategies to avoid them when you start your first trade.
So look no further, because we’ve got you covered. Let’s dive into some of the most common crypto scams and how to avoid them.
Crypto Currency Scams
Fake Websites
It’s not uncommon that scammers sometimes take the identity of popular trading platforms to trick new or experienced traders and investors. These fake websites usually have a similar but slightly different domain name. For example, you might have coinbase.com but they might create one that is coinbase-USA.com to mimic it and pass authority over to the unsuspecting victim.
They look very similar to the original verified site but when you take the time to analyse, you might notice little differences that don’t match up. This is most likely because its a scam.
Phishing Scams
Crypto phishing scams usually target information related to online wallets, such as passwords and passcodes. If they are able to steal your passcodes, they have access to all your funds within the wallet to do whatever they want. This is never good, as it can be hard to track, trace and retrieve your funds.
Opting for secure passwords and ensuring you aren’t sharing them or keeping them in places where hackers could find them is your best way of protecting against cryptophishing scams.
Forex Scams
Forex scams often reach out to unsuspecting victims as guaranteed profits, something that no reputable firm or broker would ever claim. When it comes to crypto, there is no guarantee as it’s a volatile area. While predictions can be made, there is never a 100% chance of anything happening. If there is an unreputable source screaming this from the rooftop, then it’s probably a scam. If it’s too good to be true, then it probably is.
Final Thoughts
When it comes to cryptocurrency scams, you have to be very careful and sceptical of any people reaching out, guaranteed profits, and hackers; therefore, establishing a secure network and keeping things like passcodes secure are some of the best ways to avoid crypto recovery processes. Make sure you are checking the URL of any new crypto sites you might be looking through and remember, if it sounds too good to be true, then it most likely is.
